Nordic TSOs stresses importance of go-live of aFRR capacity market as soon as possible

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Nordic TSOs stresses importance of go-live of aFRR capacity market as soon as possible

The formal deadline for ACER to decide on the proposals for a Nordic aFRR capacity market is August 17. In a letter to director of ACER, Nordic TSOs emphasize the importance of being able to start the aFRR capacity market as soon as possible once the ACER decisions are available.   

Nordic TSOs are challenged by the speed of the green energy transition and the growing needs for balancing. To be able to ensure the adequacy of balancing reserves in all the bidding zones for ‘A green Nordic region’, it is crucial that we are able to procure balancing reserves across the bidding zone borders  – i.e. across the country borders and across the borders of the bidding zones within each country.  

In the letter to ACER, Nordic TSOs raise their concern for the possible delay in implementation of the Nordic aFRR capacity market due to interpretation of the of Electricity Balancing Regulation. Nordic TSOs’ main concern is that delayed implementation of a common Nordic aFRR capacity market will cause a socio-economic loss for the Nordic society on approximately 50 million euros per year. Delay will also lead to a less transparent approach for TSOs, to secure the necessary reserves for a safe operation of the power system.  

The need for aFRR is increasing and the aFRR is also the backbone of the new balancing model that is being developed among the Nordic TSOs in the Nordic Balancing Model program. It is necessary to develop the capability of this reserve to be able to introduce the ACE based balancing and 15 minutes market resolution required by the European legislation. That is also the prerequisite for joining the European platforms.